Major oil marketers have historically used proprietary credit card programs to build customer loyalty. Customers holding branded credit cards, such as Mobil or Chevron gas cards, will be more likely to return to those branded gasoline outlets to make their fuel purchases.
The early 1980's saw an aggressive move by all the major oil marketers to automate their gasoline stations by replacing the traditional mechanical fuel dispensers with electronic dispensers that can be reset by a remote operator. However, customers still had to pay at a cashier booth located either in the station office building or at a kiosk on the fueling islands. Gilbarco, a leading supplier of fuel dispensing equipment, launched their CRIND (card reader in dispenser) technology in 1988, which enabled customers to pay at the pump with their credit cards. The first implementation of card readers depended on dial up modems to connect the station's point of sale (POS) system to the credit card authorizer network. These connections were upgraded to ISDN connections and now the majority of stations communicate POS transactions via VSAT (very small aperture terminal) connections. Throughout this evolutionary process, the major oil marketers were always focused on expediting the fueling transaction for their customers.
RFID technology was introduced to the fueling customers in May of 1997 when Mobil launched the Mobil Speedpass program. Mobil Speedpass enabled Mobil customers to link their bank credit cards, such as VISA or MasterCard, or their Mobil gas card to their Mobil Speedpass account. Mobil retail outlets equipped for Speedpass installed RFID readers at the pumps internal with the CRINDs. Mobil Speedpass customers are issued RFID transponders in several format choices which are read by the RFID readers mounted in the pumps. This, again, expedited their customers' fueling transactions while still maintaining a high level of security.
Shell Canada is currently deploying RFID technology at their stations through Shell's EasyPAY program. Domestically, Shell began testing RFID in Florida and Ohio in 1998 and 1999, respectively. Phillips 66 has also been testing RFID technology in their Kicks 66 stores in the Kansas City metropolitan area since August of 2001.
Other market tests of RFID payment methods include national brand names such as McDonalds, Pizza Hut, Taco Bell, KFC, VISA and MasterCard.
ExxonMobil and Shell Canada are aggressively promoting consumer adoption of their RFID systems. ExxonMobil currently has 5.5 million Speedpass users and are targeting to have 30 million users by 2006. Shell Canada is rapidly deploying RFID to all their sites in major metropolitan areas throughout Canada. These companies both cite faster and easier transactions at the pump and in store checkout among the advantages of RFID to entice their existing customers as well as new customers to subscribe to their respective programs. Yet, the actual process of signing up a new RFID subscriber is cumbersome and requires manual intervention on the part of the company through their outsourced fulfillment houses, network providers, and database managers.
Case Study: ExxonMobil Speedpass
There are currently 4 ways for a prospective new member to subscribe to Speedpass: online application, apply by phone, download and print/fax application form from the Speedpass website, or fill out a hardcopy application form available at ExxonMobil stations and mail the form in.
Any of these options can take from 5 to 10 business days from the date the application is completed until the RFID transponder is in the customer's hands. There is no method to process a member application at the point of purchase. Upon receipt of the new RFID transponder, the new member must call Speedpass to activate the transponder before it can be used. The new transponder can be used almost immediately upon calling Speedpass.
Case Study: Shell Canada EasyPay
There are currently 5 ways for a prospective new member to subscribe to EasyPay: online application, apply by phone, download and print/fax application form from the Shell Canada EasyPay website, or fill out a hardcopy application form available from Shell EasyPay stations and mail the form in. Any of these methods take from 7 to 10 business days to get the RFID transponder into the customer's hands. In addition to these options, some EasyPay station operators have stepped up the promotion and assist the prospective member with the application form on site and fax in the completed form for processing from the store before the customer leaves. In this scenario, the new member leaves the station with his/her new RFID transponder in possession; however, that transponder cannot be used until it is activated.
After the new RFID transponder is received, new Shell EasyPay members activate their transponders by calling Shell EasyPay. Once the call is made, the transponders may be used after 2:00 AM of the following day. New members who are given their transponders at a Shell EasyPay station must wait 2 days before they can call to activate their transponders.
The above examples illustrate a severe limitation to the RFID deployment initiatives put in place by major corporations. The inability of the current process to place an RFID transponder, ready for use, into a prospective member's hands at the point of purchase hinders the rate of deployment and may, in fact, discourage some potential members from ever subscribing to the program.
What is needed is a method and mechanism to distribute and maintain RFID transponders to the customer and activate those transponders immediately and at the point of purchase. The RFID Transponder Dispenser/Authorizer does just that.